First-time buyers are having a difficult time at the moment, and, as with most things involving money, the less well-off you are the harder hit you’ll get.
So how can this be helped? Today, we want to bring your attention to one possible option: the New Build HomeBuy government scheme.
By initially purchasing a share (normally 25 – 75%) in a property, rather than the entire thing, you massively reduce the initial amount that has to be paid. The enormous investment when first buying a home is the biggest stumbling block for a lot of people.
The remaining share of the property you then pay rent on, which itself is at a reduced rate.
This isn’t where it ends though. After your initial purchase, you can buy a greater and greater share in your home, a method known as ‘staircasing’. This allows you to work all the way up to having a 100% share in the property, at which point, rather obviously, you completely own it.
If, at any point, you think, “Wow! I really want to sell my house!” then that avenue is still open. At any time up until you own 100% of the house, you can sell your share of the property to somebody of your landlord’s choosing.
It’s easier to sell once you’ve achieved complete ownership though, as you no longer have to consult a landlord. From here, you could sell with the intention of moving, stay in the property without having to pay rent, or sell to a company that buy property and rent back to you, allowing you to cash in on your newly bought house without having to move out.
Of course, when considering your options for buying you need to find the one that’s right for you. If monthly payments of rent are going to be a problem, then this scheme won’t work, just as it won’t work if you can’t get the initial down payment together. In these circumstances, there are still options for you, but it’s going to be hard, especially with the current state of the housing market.